The Short-Term Path of Least Resistance is Again Higher
With no reason for markets to go down, buying is flowing in and this may prove to be especially so in high beta stocks as hedge funds and many asset managers use these stocks as a way to catch up to the index returns (most funds are training the averages – those who have mandated to perform in-line or to beat the averages risk job extinction unless they catch up over the next 7 weeks. Until a news event occurs, the short-term path of least resistance is again higher.
Today’s Potential Opportunities on Further Pullbacks:
ETFs: SPY